Everspin Technologies, Inc. (NASDAQ:MRAM) is definitely on the radar of institutional investors who own 38% of the company
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Everspin Technologies' stock price might be vulnerable to their trading decisions
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51% of the business is held by the top 13 shareholders
A look at the shareholders of Everspin Technologies, Inc. (NASDAQ:MRAM) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 38% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
Let's delve deeper into each type of owner of Everspin Technologies, beginning with the chart below.
Check out our latest analysis for Everspin Technologies
What Does The Institutional Ownership Tell Us About Everspin Technologies?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Everspin Technologies already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Everspin Technologies' earnings history below. Of course, the future is what really matters.
It would appear that 9.2% of Everspin Technologies shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is AWM Investment Company Inc, with ownership of 9.2%. New Venture Partners LLC is the second largest shareholder owning 7.0% of common stock, and Sigma Partners holds about 5.7% of the company stock. Furthermore, CEO Sanjeev Aggarwal is the owner of 0.8% of the company's shares.
After doing some more digging, we found that the top 13 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.